The How’s and Why’s of Heavy-Equipment Rental Market Growth

Certified Rental is one of the largest and most proactive heavy-duty equipment rental companies in the country. We review our industry in-depth and plan for industry changes and the factors that alter our customer’s needs. After all, a fleet of rental bulldozers can not be produced in three months and we need to be ready for our industry’s demands before they actually occur.

That’s why Certified Rental has a rental fleet valued at over $130,000,000! In addition, we ensure that our rental equipment is late-model, low-hour equipment with the latest in productivity and safety features, like Komatsu’s Intelligent Machines. And we’ve been doing it since the 1960’s, so we have the experience and industry knowledge to successfully predict the equipment you will need, when you need it. Since the recession that began in 2008, we have seen a shift in the way our customers procure their heavy-equipment. 

It is estimated that 50% or more of construction equipment is procured through the rental process. And in Europe and Asia the percentage of rental is even greater. Some of the drivers of this shift include:

Formation and Deployment of Capital

  • Post recession banking requirements make it more difficult to borrow for business reasons
  • Contractors know the most effective use of capital is in their “Primary Business” not in equipment or other support activities
  • Rental improves cash flow by paying only when used
  • Through RENTAL, the supplier effectively provides the capital for the equipment used in your business

Equipment Utilization

  • Fleet management and related physical utilization is a very difficult task
  • Often one machine is too many and at times ten machines are too few; wide variations in need in multiple locations is easy with rental
  • Through RENTAL, by returning the equipment when no longer needed, the user shifts the responsibility to the supplier for best utilization of the asset
  • At today’s high price point for equipment, efficient utilization is even more important than it has been in the past

 Cost – Predictability, Control and Risk Management

  • Repairs and Maintenance remain the responsibility of the supplier other than repairs resulting from damage or improper use
  • Rental eliminates the user need for employing service technicians
  • Rental Rates (including all costs) are fixed at the time of starting the rental
  • Idle time is eliminated by return of the machine
  • More precision and predictability in biding jobs
  • Through RENTAL all the above risks are retained by the supplier

 Job Efficiency

  • Access to the latest technologies of the “Smart Machines” are readily available
  • Expansion and contraction of needed fleet for a specific job is routine
  • Fuel economy of Tier IV and other environmental considerations are present in the rental machine
  • Through RENTAL the user constantly has access to low hour, late model machines

In addition to renting heavy-equipment, our customers are finding additional savings using MARC (Maintenance and Repair Contracts) as well as PMC (Preventive Maintenance Contracts). These allow for better budgeting of equipment for projects and in some cases nearly eliminate any maintenance costs. Below are some of the benefits of these contracts. The chart below illustrates how costs of Equipment, Repair and Maintenance (R&M) are distributed based on equipment procurement strategies.

 MARC – Maintenance and Repair Contract

  • Fixes repair costs over the stated term
  • Eliminates warranty premiums (lower acquisition cost)
  • Eliminates the need for a service technician
  • Eliminates the need for specialized technician training

 PMC – Preventive Maintenance Contract

  • Fixes cost of fluids and filters at recommended intervals
  • Eliminates payroll for a technician
  • Can be done after hours

Download our Equipment Rental Guide to see our line-up of heavy-equipment rentals and contact your local Certified Rental location for a quote. And if you’ve never rented from us, be sure to mention our First Time Renter Program, that offers you 20% off on your first Certified rental.